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how to fix an hvac p l mistake i see often hi this is josh horn cpa of horn valuation i help owners build value and sell their business im talking about the profit and loss today and a mistake i see on almost every financial statement that comes across my desk why does it matter to you well because you can make more money if you fix this its easy to fix and when you do it you can make faster and better decisions so lets take a look at this and see how you can fix this in your hvac business today lets start with a 30 000 foot view of a p l ive showed this one to you before but its worth reviewing because there are only three major components of your hvac pnl and they are your sales what you bill your customers the second thing is the cost of goods sold which should include the direct materials and the direct labor the technician labor on the jobs perform and then finally you have your fixed costs the cost to run your building the cost to pay your administrative staff your insuranc